Thursday 1 November 2012

Edmundson's Electric Center deal set for OFT clearance

Wholesaler Edmundson Electrical's 2011 acquisition of Leamington Spa-based Electric Center is expected to be cleared by the Office of Fair Trading (OFT). The watchdog's concerns about competition in four local areas look set to be allayed as a buyer for the branches has been found.

In July 2011, the Cheshire company bought out Electric Center, which is part of the Wolseley Group, in a deal valued at between £30m and £40m.

The OFT announced earlier this year (May) that the deal would not be referred to the Competition Commission after Edmundson agreed to sell four branches in England and Scotland.

The proposed purchaser for all four branches, Abbey Cross Trading Ltd, has been identified in the undertakings in lieu, which the OFT is now consulting. It has entered into a sale and purchase agreement with Edmundson for the four branches.

Abbey Cross will acquire the Electric Center branches in Trowbridge in Wiltshire and Elgin and Stornoway in Scotland, as well as the Edmundson Electrical branch in Kendal, Cumbria. The sale agreement is conditional upon acceptance by the OFT.

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